The gross profit margin expresses your profits as a percentage of the total sales revenues generated. This percentage allows you to compare the profits of. Gross Margin Percentage Calculator. Gross margin percentage measures the relationship between net sales and cost of goods sold. Calculate your gross profit margin with Shopify's Markup Calculator. Determine the right selling price for your products and increase your profits. Tina September 23, at 9: Ben, the correct calculation is: Justin May 24, at 9: Keith September 21, at 2: It's interesting how some people prefer to calculate the markup, while others things in terms of gross margin. Cost of goods sold. You can compare your gross margin percentage with industry data to measure how your company compares to competitors. A financial metric used to assess a firm's financial health by Views Read Edit View history. I have a question. Profit margin is part of a category of profitability ratios calculated In the common language, the profit is also called either markup or margin when we're dealing with raw numbers, not percentages. Some retailers use margins because you can easily calculate profits from a sales total.